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The near-term outlook for the stock of Housing Development Finance Corporation (HDFC) is bearish. The 21-Week Moving Average (WMA) at ₹2,259 has been capping the upside since last week has failed in its attempts to breach this resistance. So, as long as the stock remains below the 21-WMA, the view is negative. A fall to ₹2,020-₹2,000 in the next one-two weeks.
Traders can go short at current levels. Accumulate shorts on a rise at ₹2,240. Keep the stop-loss at ₹2,280. Trail the stop-loss down to ₹2,140 as soon as the stock falls to ₹2,110. Move the stop-loss further down to ₹2,090,the stock touches ₹2,060 on the downside. Book profits at ₹2,040. It is to be noted that the ₹2,020-₹2,000 region is a good short-term support from where a bounce cannot be ruled out. The bearish view will get negated only if the stock breaks above ₹2,250 – the 21-WMA hurdle decisively. Such a break will pave way for a fresh rally to ₹2,450-₹2,500.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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